Careers in Finance: The Compliance Officer

Compliance officers are the watchdogs of the financial industry.

A compliance officer is one of the most important jobs in the financial industry, just as essential, if not more so than the better-known positions of investment bankers, analysts, and wealth managers. Behind every bank or financial institution deal is the approval stamp of the compliance department.

But what exactly is a compliance officer?

The CO: roles and responsibilities

A compliance officer ensures that their company adheres to government regulations and acts in accordance with internal policies on ethical business practices.

If a deal is completed without following compliance regulations, it will have serious repercussions for the company. This includes the imposition of legal sanctions and financial penalties.

Some of the main duties of a compliance officer include:

• identifying risks – particularly having procedures in place to avoid risk.
• conducting investigations and reviews – and ensuring that they are done in a timely manner.
• keeping up-to-date with regulations and laws – such as monitoring regulatory agency websites and different law bodies.
• checking internal compliance policies – making sure that they mirror any regulatory changes
• training staff – because abiding by laws and regulations is the responsibility of everyone in the company.

Educational background

There is no formal university training in compliance. Although there are certificate courses available online, compliance officers generally hold degrees in related fields such as business, finance, or the law.

According to Investopedia, “Bachelor's degrees are normally a minimum requirement, and some employers may look for advanced degrees, like a law degree or a master's degree in business administration (MBA), especially to qualify for a higher-level position.”

Skills

There are certain skills needed to be a successful compliance officer. These include:

• problem-solving – analyzing complex issues and understanding how internal and external regulations can be used.
• attention to detail – including maintaining up-to-date legal knowledge and applying it to daily responsibilities.
• integrity and honesty – making difficult decisions are sometimes required, particularly when looking objectively at one’s own company business deal to decide if it adheres to current regulations.
• communication – being able to speak about complex regulations in a way that is easily understood by non-experts.

Future trends

Since the financial crisis of 2008, the role of the compliance officer has grown in importance. As new regulations were introduced and more government attention was directed towards the financial sector, banks and financial institutions had to bolster their compliance departments.

This trend is set to continue. According to the U.S. Bureau of Labor Statistics, employment of “financial examiners” is projected to grow by 18 percent from 2020 to 2030, faster than average compared to other sectors.

Not only does the compliance officer have an important role now, but it will only become more and more needed, and remain one of the fastest-growing positions in the financial sector.

Further reading:

Compliance Officer un métier du passe, présent et avenir par Nadia Gattlen

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